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For Chinese Vendors Auto parts Americans pick up the card for Trump Tariffs star-news.press/wp

Beijing – If you have ever gained your own car brakes, the part you bought could very well be made by Chinese supplier auto parts Judy Zhang.

Zhang’s A company based in the eastern Chinese city Qingdao and supplies the brake hose for thousands of car models in the USA, among them is a targeted US car rating on the import of cars that are asked in force on Thursday.

It is at the top 25% of the tariff imposed on the first term of President Donald Trump, plus 20% of the tariffs imposed by Chinese imports from return to the office in January.

Although Trump will insist that China, among other things, to the American tariffs, Zhang and other vendors of auto parts say that tariffs will most likely shoulder American consumers and that they will not bring production in its industry in their country.

Demonstration on automatic maintenance and repair of the exhibition in Beijing on Monday.Hilary Pan / CNBC

Zhang said that she managed to push the existing 45% of her duties on their products on US customers.

“Very few manufacturers can do what we do,” she said in an interview on Monday in the show auto parts in Beijing, which attracted 1,200 Chinese suppliers. “Or make as many types.”

Zhang said he would consider absorption of up to 15% of the new tariffs, but only if American clients have made bigger orders.

“If they want to continue doing work (with us), they will have to absorb it and perhaps increase their own price for consumers,” she said.

Although Chinese vehicles are not sold in the US, China is crucial for the American aftermarket, which serves to customers who want to fix their vehicles.

Trade auto parts such as autozone, o’reilly and hood computers on Chinese suppliers with their flexible production lines and cheaper workforce to provide a wide range of low-cost parts – requirements that have not easily replaced other countries.

Chang'an car distribution center in Chongqing
New electric vehicles at the Distribution Center in Chongqing, China, last year.Li Hongbo / VCG via Getty Images

“For Ford, GM, Toyota, BMW, which is sold in the United States, you want parts for that,” said Jack Perkowski, founder and managing a partner for banking banking in Beijing. “The Chinese became very good in terms of how these parts are variously forced, and the cost of tools in China have much lower.”

Not far from Zhang, Gosven Zuo, which among other things makes motor for cars from Ford and General engines, said not to pay no more than 5% of 45% in US tariffs.

His American customers absorbed most of the expenses of existing tariffs, Zuo said, although he agreed to take some loss when Trump sent an additional 10% tariff in February.

But the higher the tariffs they go, harder it becomes pressing costs.

“We no longer have a lot of space to compromise, to be honest,” he said. “We are a manufacturer, we don’t have a high margin.”

Zuo, which sells about 30% of its products to Americans, is trying to expand to new markets, seeking more customers at home in China as in Europe and the Middle East.

“It’s partially because of the tariff, but also what we need to do to survive as a factory,” he said. “All we know is that we cannot take orders that we lose us money.”

Chinese supplier of auto parts Judy Zhang, right, with colleague on automatic maintenance and repair expo in Beijing.
Chinese supplier of auto parts Judy Zhang, right, with colleague on automatic maintenance and repair expo in Beijing.Hilary Pan / CNBC

While Trump says his tariffs will drive production from countries like China back to the United States, Zuo and others say it is unlikely.

“I have dozens of suppliers,” he said. “It is not realistic to relocate them all in the US”

Zhang also said that he did not plan to avoid tariffs by moving production in the United States, especially when there is so much insecurity around Trump policies.

“We’re not a big company,” she said. “We can’t afford to set the American factory. The cost is too.”

Eunice Yoon reported from Beijing, and Peter Guo from Hong Kong.

2025-04-02 18:30:00

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